Reducing budget deficit a priority for President Medvedev

Russian President Dmitry Medvedev has unveiled the country's three-year budget plan for the next 3 years.

He has flagged slashing the number of civil servants by up to 20% and implementing special privileges for Russia’s Skolkovo research centre. He says the budget aims to create greater efficiency and competitiveness in the Russian economy, moving away from anti-crisis measures.

The President emphasized that reducing the budget deficit would be a key priority in the coming years.

“I propose to proceed with a 50% cut in the federal budget deficit by 2013, compared to the 2009 level. That’s the task that all of the G20 countries, all the countries with developed economies, are putting in front of themselves. This is not just an acceptable reference point for us, but a definite need. If we don’t cut the deficit enough, we risk losing the stability of the budget system which we have worked hard to reach.”

Speaking with Business RT, Vladimir Osakovsky, Head of strategic Planning and Development at UniCredit Bank, was optimistic about the President’s budget plan and said that Moscow becoming a global financial centre was just a matter of time and proper Governmental support.